How Long Do Bankruptcy Proceedings Take?:

How Long Does it Take to File for Bankruptcy? - You wouldn't go to the DMV and expect to be in and out in five minutes, right? Unfortunately, the DMV is speedy compared to bankruptcy court (http://topics.law.cornell.edu/wex/Bankruptcy), especially since the Bankruptcy Abuse and Consumer Protection Act was passed in 2005. The pace of your proceedings typically has to do with the type of bankruptcy under which you will be filing. Chapter 7 bankruptcy, which liquidates your assets and then discharges most of your debts (excluding child support, student loans, alimony, and taxes), usually takes 4 to 6 months from the date you file. But don't panic quite yet: the very day you file, an automatic stay, or temporary injunction, is issued. This prevents your creditors from having any contact with you. No calls, no letters, no emails. Between day 20 and day 40 after filing, you will have a 341 meeting. You (and your bankruptcy attorney - bankruptcy law is so complicated that hiring an attorney is strongly recommended) must attend, and your creditors can opt to attend as well. Unless you have a huge debt, they probably will not. During the 341, you'll meet with the court-appointed trustee. If any additional documents are required, make sure to get them to the trustee as soon as you can. After your 341 meeting, your debt should be discharged within 60 to 90 days. From start to finish, chapter 7 takes from 4 to 6 months. That is much less time than it takes when you file chapter 13 bankruptcy. This can take anywhere from 3 to 5 years. Why so long? Under chapter 13, you are not discharging your debts. Instead, a trustee is appointed to develop a debt reorganization plan. After you file your petition, you have to provide the trustee with a list of your creditors, assets, income, expenses, liabilities, financial history, and a plan for reorganizing your debt. You will meet with your trustee within 1 to 3 months of filing. As with the 341 meeting for chapter 7, your creditors can opt to attend, though it is rare that they will for personal bankruptcy. The law requires that reorganization plans have terms of 36 to 60 months. So the actual proceedings won't take 3 to 5 years, just the repayment portion. Keep in mind that you will also need to do quite a bit of work before you file. This includes gathering relevant documents and filling out the requisite bankruptcy forms but the 2005 Bankruptcy Act also requires that you attend a credit counseling class. If you do not have the certificate stating that you have gone to the class, you can't file. Can you speed your chapter 7 or 13 bankruptcy proceedings along? In some ways. Before you file, you can make sure you have gathered all the relevant documentation. You will want copies of all your financial records, including most recent bank statements, bills, payment coupons, and receipts. Also make copies of any legal notices or paperwork you have, divorce decrees, canceled checks, tax returns for the past 3 years, promissory notes, and more. This will make it easier for the trustee to determine what your assets are and how best to discharge your debts. Remember though, that for both chapter 7 and chapter 13 bankruptcy cases (Bankruptcy basics here), as soon as you file, your creditors cannot contact you. If you have been bombarded with calls and letters demanding money, you know how stressful that is. Bankruptcy proceedings are no walk in the park, but at least you have that particular stress eased off your shoulders.

Do You Need a Bankruptcy Attorney?: